Michigan Senate approves $195 million for Detroit

By DAVID EGGERT - Associated Press

June 3, 2014

LANSING, Mich. (AP) — Michigan's Senate has approved spending $195 million to help shore up Detroit's pension funds, a key legislative step in a deal designed to end the largest public bankruptcy in U.S. history. That clears the way for Gov. Rick Snyder, who supports the plan, to sign the bills soon.

The Republican-led Senate voted 21-17 to contribute state money to join commitments from 12 foundations and the Detroit Institute of Arts. The pool of money would prevent steeper cuts to retiree pensions, while the city-owned art museum and its assets would be shielded from being sold in the bankruptcy case.

The GOP-controlled House approved the legislation about two weeks ago. A spokeswoman says Snyder will sign it "as soon as possible" after a required technical move by the House.